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1098-T corrections
Banner Accounts Receivable provides corrections processing that complies with IRS Publication 1220 specifications for tax form electronic filing.
If any tax forms require corrections after a school sends 1098-T tax returns to the IRS, the school must correct the information and send the corrected tax returns to the IRS.
Tip: The correction file must include only tax returns that require corrections, and the school must send the corrected tax forms to the IRS and notify the person whose tax forms are corrected.
Corrected tax returns can be either a One-transaction Correction or a Two-transaction Correction.
A One-transaction Correction is a correction to a tax form that is filed with one or more of the following error types:
- Incorrect payment amounts in the Payee “B” Record
- Incorrect payee indicator
Payee indicators are non-money amount indicator fields that are found in the specific Payee B Record form record layouts of the Payee “B” Record between field position 544 and field position 748.
Two-transaction Correction is a correction to a tax form that is filed with one or more of the following error types:
- No payee SSN (for example, if there is a blank SSN or an incorrectly populated SSN)
- Incorrect payee SSN (for example, if a populated SSN value becomes blank or if there is a change in the SSN value)
- Incorrect payee name (for example, if a last name or first name changes)
1098-T processing corrections step-by-step procedures
After tax returns have been sent to the IRS, users can process corrected filings and send those corrections to the IRS. TSP1098 in Corrections mode will only select records with IRS Report Status as set to Sent.
About this task
Process tax returns that have corrections applied to them where IRS Report Status is Sent.
- Make changes to reportable rules on TSATAXR, if needed. If calculations are incorrect, a rule change must be made on TSATAXR to recalculate reported box amounts.
- Make any changes needed to name or social security number on either the General Person Identification (SPAIDEN) page or the General Person (SPAPERS) page. The corrections process will update all applicable 1098T values based on the student’s current data in Banner, such as Half-time and Graduate Indicator.
Procedure
- To run 1098-T Student Tax Notification Process (TSP1098) in Corrections mode, set the Process Run Mode to C. Corrections mode will consult all tax records, so to produce corrections for specific ID's, run TSP1098 in Corrections Run Mode with a population selection of ID's that need to be corrected.
- Review corrected records on Student Tax Notification (TSATAXN) page. Run TSR1098 with Parm 02/11 as T, Parm 03 as S, Parm 08 as Y and Parm 20 as Y to obtain the ID’s with corrections.
Tip: Make any additional changes as necessary and rerun TSP1098 in Corrections mode (Parameter 01) as needed.
- To generate the corrected IRS data file and student forms in Test mode, run the 1098 Student Tax Report (TSR1098) in Test mode with Parm 02/11 as T, Parm 03 as S and Parm 08 as Y with the Correction Run Parameter 20 set to Y.
When in Corrections mode, both paper forms and the IRS .dat file must be processed. Review the corrected IRS .dat file and student forms in the .lis file.
The Student Notification and IRS Report status are not updated in Test Mode.
- To generate the corrected IRS .dat file and Student forms in Official mode, run TSR1098 in Official mode (Parm 2/11 as O) with parameter 3 set to S and parameter 8 set to Y and Parm 20 set to Y.
Result: The Student and IRS status are updated to Sent and the date is updated to system date.